Consumer Spending Grows in October, November, Delayed Data Show

12:58 PM EST, 01/22/2026 (MT Newswires) -- US consumer spending grew in October and November, while the Federal Reserve's preferred inflation metric for November accelerated in line with market expectations, delayed government data showed Thursday.

Personal consumption expenditures rose 0.5% each in October and November, the Bureau of Economic Analysis said. A Bloomberg-polled consensus called for 0.5% growth for November.

The combined October and November data were delayed due to a recent 43-day US federal government shutdown.

"Personal spending was robust through the first two months of (the fourth quarter of 2025), echoing other indicators, such as retail sales, and suggesting that consumer spending remained more resilient throughout the lengthy government shutdown than expected," Ksenia Bushmeneva, an economist at TD Economics, said in a note. "It was also notable that spending continued to outpace income, with saving rate falling to levels not seen since late-2022 when core measures of inflation were around their peak."

The annual headline PCE price index accelerated to 2.8% in November from 2.7% in October, while the metric rose 0.2% sequentially for both months, according to the BEA. Both prints for November were in line with market estimates.

The Fed's preferred measure, which excludes food and energy, rose to 2.8% annually in November from 2.7% the previous month. Sequentially, the core index advanced 0.2% for both months. Both measures for November met consensus expectations.

"We expect consumer spending to remain robust at the start of 2026," Bushmeneva said. "This robust spending momentum and steady inflationary backdrop provide the (Federal Open Market Committee) with reasons to remain patient regarding further rate cuts when its members meet next week."

Markets widely expect the FOMC to hold its benchmark lending rate steady Wednesday, according to the CME FedWatch tool. Last year, the central bank delivered three back-to-back 25-basis-point interest rate cuts amid concerns about the labor market.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.